News: IAG UPDATE 1-Insurance Australia Group enters reinsurance agreements; on track for FY24...

(Updates with further details on the agreements from paragraph 2 onwards)

June 28 (Reuters) - Insurance Australia Group (IAG) said on Friday that it has bought reinsurance protection from National Indemnity Company, a unit of Berkshire Hathaway BRKa.N , and Canada Life Reinsurance to mitigate natural perils volatility for the next five years.

The insurance giant said the agreements would provide up to A$680 million ($451.86 million) of additional protection annually, and up to A$2.8 billion over the entire five-year period.

IAG noted that the reinsurance would effectively limit natural perils costs to A$1.28 billion in FY25 for the firm.

The agreements would "provide greater certainty over the cost of natural perils cover for customers, stabilise earnings and reduce capital requirements," said Managing Director and CEO Nick Hawkins.

The general insurer also confirmed it is poised to reach its FY24 reported insurance profit and margin around the upper end of its outlook ranges, and it is expecting its fiscal 2024 gross written premium to be consistent with the "low-double digit" forecast provided in February.

($1 = 1.5049 Australian dollars)